China car imports fall 11% in H1 as low base cushions decline

• Retail gross sales of imported vehicles fell 29% year-on-year to 190,000 models in the primary half.
• Japan and Germany held regular, whereas NEVs slipped to 2% of imports as gasoline vehicles regained dominance.

China imported 200,000 autos in the primary six months of 2026, down 11% year-on-year, based on knowledge launched Sunday by the China Passenger Car Association (CPCA).

The decline was far smaller than in earlier years, however that owed largely to the low base of late 2025 reasonably than any real restoration in demand.

June imports got here to 38,000 models, down 11% from a yr earlier. The struggle between the US and Iran disrupted transport in March and April, inflicting a pointy drop in imports on the time. The CPCA mentioned the first-half efficiency was comparatively robust by current requirements.

Weakness in demand was extra evident. Retail gross sales of imported vehicles fell 29% to 190,000 models in the primary half, and dropped to 30,000 models in June, a steeper 39% decline. The CPCA warned that stress will stay vital.

China’s automobile imports peaked at 1.43 million models in 2014 and have been falling since.

Imports totaled 700,000 models in 2024, down 12%, earlier than shrinking additional to 480,000 models in 2025, a 32% decline. Smoothing out the volatility, imports have now fallen for eight consecutive years, the CPCA mentioned.

The rise of native manufacturers and the accelerating localization of worldwide automakers are the primary causes behind the sustained contraction.

By nation, Japan remained the highest supply with 103,493 models, up 20,095 from a yr earlier. Germany accounted for 44,311 models, the US 17,732, Slovakia 13,520 and the UK 10,855.

Japan, Thailand, Austria and Mexico posted the most important positive factors, whereas Slovakia noticed the most important loss.

Imports are reverting to a standard gasoline-vehicle combine. Imported battery electrical passenger vehicles fell 36% in the primary half, whereas plug-in hybrids dropped 58%. NEVs accounted for two% of imported passenger vehicles, down from 3% in 2024.

German NEV imports carried out poorly and NEV imports from the US had just about no gross sales, the CPCA famous.

By engine measurement, gasoline fashions beneath 2 liters made up 64% of whole imports, up 4 proportion factors from final yr. Larger 3- to 4-liter fashions declined extra slowly, as they face much less competitors in the home market.

The luxurious section confirmed a blended image. Lexus remained the highest imported luxurious model, with insurance-registered retail gross sales of 184,000 models in 2025, up 2%, and first-half 2026 volumes nonetheless close to the highs of the previous 4 years. Mercedes-Benz and Land Rover held up comparatively nicely.

Super-luxury manufacturers, nevertheless, confirmed indicators of collapse. Bentley and Rolls-Royce have been sluggish, Maserati pulled again after an unusually robust 2025, and Ferrari proved comparatively resilient.

The CPCA mentioned buying energy amongst ultra-high-end shoppers has slowed for now, with current sell-offs placing stress on pricing.

Regionally, luxurious car markets in historically prosperous areas such as Shanghai, Beijing, Hangzhou, Chengdu and Wuxi are beneath stress. Tianjin remained the highest marketplace for super-luxury vehicles, whereas Beijing has declined sharply of late.

China’s NEV retail penetration held at a excessive 62.8% in June as gasoline autos continued to break down.